Abstract
With the liberalization of trade regime since 1991 the inflow of FDI in India has substantially increased. The paper aims to examine the effect of trade liberalization on inflow of FDI in India from 1980 to 2015. Using Johansen method, it is found that there is long run cointegration relationship between inflow of FDI, trade liberalization index, gross domestic output, exports and inflation. The result of vector error correction model shows that these factors Granger cause inflow of FDI in the long run but not in the short run.
| Original language | English |
|---|---|
| Pages (from-to) | 85-93 |
| Number of pages | 9 |
| Journal | International Journal of Applied Business and Economic Research |
| Volume | 15 |
| Issue number | 21 |
| State | Published - 2017 |
Keywords
- Export
- FDI inflows
- GDP
- Granger Causality
- Inflation
- Trade liberalisation